‘Tis the season for “biggest story of the year” articles and, when it comes to crypto, the choice in 2025 was not hard. The obvious pick is Wall Street’s full-on embrace of crypto, which saw banks and big companies tripping over each other to show they are down with stablecoins and tokenized assets. But look a little closer and you’ll see 2025 featured another major, but more subtle, trend: the ongoing expansion of DeFi and decentralized technology.
This has been reflected in the huge growth of DeFi platforms like Hyperliquid, and in Coinbase’s decision last week to add Jupiter, a leading aggregator for decentralized Solana trading, to its app. Such developments have helped decentralized exchanges nab a bigger share of overall crypto trading volume, with degens now accounting for a double digital share of the spot trading market.
The CEO of Maple Finance, one of the leading players in the decentralized space, this week went so far as to claim “DeFi is dead”—implying that on-chain trading has become so big that it is poised to swallow conventional systems altogether. I wouldn’t go that far (at least not for a few years), but you get the point.
The CEO’s remark also highlights how, in coming years, we are likely to face confusion over what exactly the term decentralized means. For longtime blockchain enthusiasts, the term implies using blockchain technology to build more democratic alternatives to powerful institutions—including big banks, but also the likes of Google and Facebook. But if this is the promise of crypto, what should we make of JPMorgan and BlackRock launching new on-chain money market funds available to those with $5 million or more to trade?
It’s a win, of course, that blockchain technology has proved so good that the most respected names in traditional finance are using it. Still, it’s hard to get excited about giant corporations using blockchains to sling commercial paper when the original goal was to democratize large sections of society and the economy. The situation is reminiscent of the quip: “They promised us flying cars, instead we got 140 characters.”
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
DECENTRALIZED NEWS
Coinbase offers stock trading: The company says its move into equities will let it be a bridge to the era of tokenization. Coinbase also launched prediction markets in a tie-up with Kalshi, intensifying its head-to-head competition with Robinhood. (Fortune)
Here come the big banks: The country’s eight largest banks are putting tens of millions into a new non-profit that will “tell the banking industry’s story”—a clear response to crypto firms’ mass lobbying efforts, and one that could complicate the push for new blockchain legislation. (Axios)
North Korea’s record haul: The Hermit Kingdom’s notorious military-backed hackers out did themselves in 2025, stealing a record $2 billion in crypto—the lion’s share of the estimated $3.4 billion stolen overall. (Fortune)
PayPal’s hard path: The fintech giant’s CEO told Fortune his company is facing a “very classic innovator’s dilemma” as it doubles down on crypto and stablecoins to try to keep pace with competitors. (Fortune)
Bitcoin OGs still selling: Longtime Bitcoin holders keep off-loading their positions, which helps explain ongoing pressure on prices. The move may not signal a loss of confidence, but rather a sign of the market maturing as one-time HODLers take advantage of new liquidity supplied by ETFs and institutional funds. (Bloomberg)
MAIN CHARACTER OF THE WEEK
Stephanie Keith—Bloomberg/Getty Images
Caroline Ellison is back in the news after the former CEO of Sam Bankman-Fried’s hedge fund was released from federal prison. Her onetime boyfriend, meanwhile, still faces decades of hard time.
MEME O’ THE MOMENT
@brian_armstrong
The feds arrested a Brooklyn man for impersonating a Coinbase staffer in order to steal $16 million from around 100 traders. The suspect’s “lolimfeelingevil” alias probably won’t help at his sentencing hearing.
